Global defense and communications solutions provider Harris Corp. (BBB+/Stable/A-2) announced that it will acquire Exelis Inc. (BBB-/Positive/A-3) for approximately $4.8 billion in enterprise value. We are placing our ratings on Harris Corp., including the 'BBB+' corporate credit rating, senior unsecured debt ratings, and the 'A-2' short-term and commercial paper (CP) ratings, on CreditWatch with negative implications, reflecting our expectation that adjusted leverage is likely to increase to above the 3x area as a result of the transaction. We expect to lower the ratings on Harris by two notches, to 'BBB-' and revise the outlook to stable upon close of the transaction. We will lower the CP rating to 'A-3' from 'A-2' at the same time. On Feb. 6, 2015, Standard
